Tesla Approves $30 Billion Stock Award for CEO Musk Amid Legal Dispute

Tesla has approved a provisional stock award plan valued at approximately $29-$30 billion for CEO Elon Musk to retain his leadership amid ongoing legal disputes over his 2018 compensation package. This new award comprises 96 million restricted shares priced at $23.34 each, matching the exercise price of the invalidated 2018 plan, and requires Musk to remain CEO for two years and hold the shares for five years. The 2018 compensation deal, originally worth over $50 billion, was voided by a Delaware court due to concerns about board independence and improper negotiations, with Musk appealing the decision. Tesla's board emphasized the critical need to secure Musk's leadership during a decisive phase for the company, especially amid fierce competition for AI talent and Musk's involvement in multiple ventures beyond Tesla. Despite the legal uncertainty, Tesla aims to maintain a performance-driven reward structure to motivate Musk, who already owns about 13% of the company and is pivotal to its future strategic shift toward tech and AI. The company plans to propose a long-term compensation plan at its upcoming shareholder meeting.